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Refinancing Article
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With economy like it is today, refinancing is a word that is used quite frequently by lenders as well as their customers. Mortgage refinancing is a very common type of refinancing. Many homeowners, as a way to improve their credit or financial situation, will refinance their mortgage loan. Although mortgage refinancing is very common today, it isn't the only type of refinancing that banks and consumers deal with. Auto refinancing is also very common.
from:In looking at recent studies, in the year 1908, you could buy a new car for $7,300. Today you'd be lucky to buy a good reliable used car for that price. Next to your home, an automobile is your next largest purchase. It's also something we all need to have for transportation, whether for work, school or other appointments. Unfortunately, not everyone can afford to own an automobile, but a large percentage of the population does own automobiles. Many families today are two income families requiring both people to own automobiles. Since the price of new or even good used automobiles is very high, most people find themselves taking out loans to purchase their automobiles. Unlike our homes that increase in value, automobiles depreciate in value and depreciate fast.
Whereas we are able to take out our home mortgages for up to 30 years, automobile loans are usually only given for up to 5 to 7 years at the most. Only new automobiles can be taken out in that long of a term, whereas used cars usually only are allowed 3 to 4 years. With the high price of automobiles, many people find them selves requesting auto refinancing for different reasons. Auto refinancing is often needed if they need to purchase another care before their current car loan is paid off. The lender will just release their lien on the current title and put it on the new car.
If an individual has a car that is still worth a lot more than the loan balance, the consumer may use auto refinancing to get additional cash for personal reasons, leaving their automobile on the loan as collateral. Auto refinancing is also done if a couple wishes to combine their two automobile loans into one loan to get smaller payments.
Another reason people choose auto refinancing is for better interest rates. Many times the interest rates fluctuate, so consumers use this opportunity to refinance their loans to get the lower interest rates. Auto refinancing is often an option if an individual or couple is having financial difficulties. If the car is still worth quite a bit, the bank will allow auto refinancing to let them extend the period of the loan so they can have lower monthly payments. There are many benefits the consumer can get from auto refinancing at the right time with the right bank.
Refinancing News
Refinancing applications at 15-month high
Applications for mortgage refinancing hit a 15-month high last week as interest rates remained near historic lows, a mortgage bankers' group said Wednesday.
Read more...Increase in loan refinancing nationally hasn't hit home
ZANESVILLE -- Applications for refinancing home loans, bolstered by some of the lowest borrowing costs in 20 years, are up for the fifth straight week nationally, according to a weekly survey conducted by the Mortgage Bankers Association.
Read more...A Useful Refinancing Calculator
Paul Solman: With all the hullabaloo about low interest rates and refinancing of mortgages, I'd been looking around for reliable refinancing calculators on the Web and have found one with an excellent pedigree. It's the product of a well-known Harvard economist we once interviewed on the NewsHour, David Laibson, and whose course on behavioral economics we audited a few years ago. The calculator ...
Read more...Refinancing options could save big money over the loan's term
It seems as if we are in the midst of the second coming of decreased mortgage interest rates. Interest rates reached what we all thought were unprecedented lows throughout 2009 and the first four months of 2010. Rates on 30-year fixed rate mortgages dropped to the mid-4 percent range during this time period. As has been well documented, the Fed's purchasing of $1.25 trillion of mortgage-backed ...
Read more...Russia Probably Won't Increase Refinancing Rate This Year, Ulyukayev Says
Russia’s central bank is unlikely to raise the refinancing rate this year, Bank Rossii First Deputy Chairman Alexei Ulyukayev said.
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